Average rent in Toronto down 4.7% year-over-year to $2,029

Toronto's rental market is heading into the peak summer season under headwinds that are keeping prices lower than usual for this time of year.

Average asking rents for May fell to $2,029 across Canada—down 4.7 per cent year-over-year, according to a new report from Rentals.ca and Urbanation. This marks the 20th consecutive annual decline. Month-over-month, rents ticked up just 0.1 per cent from April, well below the average seasonal increase of 1.3 per cent over the previous five years.

Ontario saw the steepest declines among the largest provinces at five per cent year-over-year. Purpose-built apartments fell 3.4 per cent to an average of $2,031, while condo apartments dropped 6.8 per cent to $2,076.

Urbanation president Shaun Hildebrand attributed the softness to three factors: a weak economic backdrop, a decreasing population, and record apartment completions hitting the market. All three are keeping rent increases "softer than what is typical for this time of year."

For renters, it's a rare break. For landlords and property owners, it's a harder environment. The oversupply of new units means competition is real, and tenants have options.

Whatever relief summer brings is temporary. As the economy stabilizes and population pressures return, expect rental prices to tighten again—but for now, it's a renter's market.